[HISTORY: Adopted by the County Legislature of the County
of Sullivan as indicated in article histories. Amendments noted where
applicable.]
[Adopted 3-15-2012 by L.L. No. 1-2012]
It is hereby declared and found that because of the increase
of incidents of burglary, property theft, and theft of precious metal,
the increase of the price of precious metals and gems, the ease with
which some secondhand dealers buy and sell precious metals or gems
without requiring identification or proof of ownership, these secondhand
precious metal or gem dealers represent to persons involved in crime
an opportunity to quickly dispose of stolen property. For business
enterprises to be allowed to continue to operate without laws to control
and regulate the purchase of such articles not only jeopardizes the
property rights of many people but also extremely hampers law enforcement
in its efforts to recover stolen property and identify suspects. If
the law enforcement agencies are to efficiently and productively function
in this area, a local law regulating secondhand precious metal or
gem dealers is necessary. Thereby, the public health, morals and general
welfare of the County of Sullivan will be protected and promoted and
the best interest of the people would be served by the control and
regulation of secondhand precious metal or gem dealers. It is the
intention of the Legislature of Sullivan County that this chapter
be established and shall constitute the complete law in relation to
the control and regulation of secondhand precious metal or gem dealers
for the County of Sullivan.
Unless the context specifically indicates otherwise, the meanings
of terms used in this chapter shall be as follows:
Whenever used in this chapter, any person, corporation, partnership,
association, joint-stock company, or other business entity, who, in
any way or as a principal broker or agent:
Deals in the purchase or sale of secondhand metals or gems as
defined herein; or
Accepts or receives secondhand precious metals or gems in exchange
for credits on any other articles or merchandise; or
Deals in the purchase of secondhand precious metals or gems
for the purpose of melting or refining; or
Engages in melting secondhand metal items for the purpose of
selling; or
Engages in resetting secondhand precious gems for the purpose
of selling; or
Deals in the purchase or sale of pawnbroker tickets or other
evidence of pledged articles containing precious metals or gems; or
Not being a pawnbroker, deals in the redemption of sale of pledged
articles made from precious metals or gems.
This chapter shall not apply to the acceptance of merchandise
which is not secondhand as a return, exchange, or for credit or refund
if such merchandise was originally purchased as new merchandise from
the person accepting or receiving same, nor to the resale of such
merchandise.
The burden of proof that an article was originally purchased
from the person accepting it or receiving it, that it was the first
subsequent sale or exchange thereof to a person other than an ultimate
consumer or that it was a first sale at retail of such factory rebuilt
merchandise shall be upon the person asserting the same.
As referred to herein, shall include but is not limited to
mean diamonds, alexandrite, cymophane, ruby, sapphire, opal, amethyst,
smoky quartz, citrine, rose quartz, spinel, malachite, turquoise,
emerald, aquamarine, morganite, garnet, lapis lazuli, jadeite, kunzite,
topaz, tourmaline, zircon, amber, jet, pearl, coral, tanzanite.
As referred to herein, gold, silver, platinum, iridium, ruthenium,
osmium or any alloys of any one or more of said metals.
A.
No person shall, within the County of Sullivan, establish, engage
in or carry on, directly or indirectly, the business of dealing in
secondhand precious metals or gems, either separately or in conjunction
with some other business, without first having obtained and having
in full force and effect a license as provided herein.
B.
Such license shall be displayed in a conspicuous place at the designated
place of business of the licensee.
C.
Such license shall not in any way supplant the licensing and display
requirements of any applicable state or federal laws.
A.
Applications for secondhand precious metal and gem dealer licenses
shall be made to the County Clerk. The application shall contain the
following information:
(1)
Name and description of the applicant's business enterprise.
Individuals operating under a trade name shall present a certified
copy of the trade name certificate filed in the Sullivan County Clerk's
office. A partnership conducting business, whether or not under a
trade name, shall submit a certified copy of the partnership certificate
which was filed in the Sullivan County Clerk's office when the
partnership was formed. A corporation shall furnish a copy of its
certificate of incorporation, as well as its certificate of good standing
and, if a foreign corporation, its application for authority to do
business in New York State.
(2)
The applicant's legal address and address of all places of business
within Sullivan County and the address of a designated agent for service
of process.
(3)
A description of the nature of the business to be conducted and/or
being conducted by the applicant in Sullivan County.
(4)
The name and address of the owner or owners of the business premises
and the nature of the right of occupancy of the applicant to the use
of said premises.
(5)
A statement that the applicant is at least 18 years of age.
(6)
A statement as to whether or not the applicant has, within the past
10 years, been convicted of a crime or violation of any municipal
ordinance, the nature of the offense and the punishment or penalty
assessed therefor and such other facts or evidence as is deemed necessary
to establish that the applicant is a person fit and capable of properly
conducting the activity or business for which the license is sought.
(7)
Two photographs of the applicant, taken not more than 60 days prior
to the date of application, which clearly depict the head and shoulders
of the applicant and which shall be two inches wide by two inches
tall.
(8)
All applicants must submit fingerprints of the individual owner,
if the applicant is a sole proprietorship; the general partners if
the applicant is a partnership; and the officers, principals, directors,
and stockholders holding more than 5% of the outstanding stock if
the applicant is a corporation. Fingerprints will be submitted in
electronic form to the Division of Criminal Justice Services for a
criminal background check. It shall be the responsibility of the applicant
to obtain electronic fingerprints at an authorized civil fingerprint
submission agency, at its own expense, for use by the County Clerk.
B.
Such application for a secondhand precious metal or gem dealer's
license shall be accompanied by a nonrefundable application fee of
$200.
C.
Every applicant shall submit a bond or other surety to the County
of Sullivan in the sum of $2,000 or, for a renewal license, evidence
of bond issued in favor of the licensee. The bond shall be for the
purpose of guaranteeing payments up to the face amount of the bond
for bank drafts or other negotiable instruments issued by the licensee
in exchange for all purchase of precious metals. All bonds must be
conditioned so that the licensee will observe all laws thereto. Such
bond shall remain in force during the entire period for which the
license is valid. The County Clerk may establish rules and regulations
concerning the amount of a bond to be posted, upon proper notice to
the licensee.
A.
Upon receipt of the license application, criminal history record
information received from the New York State Division of Criminal
Justice Services (DCJS), fees and bonds required of the applicant,
the County Clerk shall review the application and, if appropriate,
issue a license to the applicant.
B.
The County Clerk shall keep a record of all licenses issued, as well
as any other matters herein described.
Every license shall expire one year after its issuance. Every
license may be renewed upon payment of the required renewal fee in
the amount of $100 and filing a renewal application with the County
Clerk no earlier than 30 days and no later than 15 days before the
license is due to expire, certifying that no changes have occurred
with respect to any of the facts or information required or supplied
on the original application, or if there have been any changes, the
applicant shall furnish the facts and information relating to such
changes and shall comply with the requirements of this chapter.
A.
A license may be denied, suspended, or revoked when the applicant
or licensee, or any of its principals, officers or directors, or any
of its stockholders owning more than 5% of its outstanding stock of
the corporation has been convicted of a crime which, in the judgment
of the County Clerk, has a direct relationship to such person's
fitness or ability to perform any of the activities for which a license
is required under this chapter, or has been convicted of any other
crime which, in accordance with Article 23a of the Correction Law,
would provide a justification for the County Clerk to refuse to issue
or renew, or to suspend or revoke, such license.
B.
A license may be denied, suspended, or revoked when the applicant
or licensee, or any of its principals, officers or directors, or any
of its stockholders owning more than 5% of its outstanding corporate
stock has omitted or misrepresented the facts or circumstances underlying
any information contained in the license application.
C.
A license may be denied or revoked when a person has been found by
a court of any state to have practiced civil fraud, deceit, misrepresentation
in conjunction with a secondhand dealer business or other business.
D.
The initial determination to deny, suspend, or revoke a license under
this subsection shall be made in writing by the County Clerk.
E.
Hearing.
(1)
Within 60 days of the initial determination to deny or revoke a license under Subsections A through D above, an aggrieved applicant or licensee may request a formal hearing. Such request shall be addressed via certified mail to the County Clerk. Within a reasonable time thereafter, the County Clerk shall appoint an independent hearing officer with the authority to compel the attendance of witnesses, administer oaths, take the testimony of any person under oath and in connection therewith require the production of any evidence relating to any matters affecting the determination. The hearing officer shall render his/her decision and recommendation to the County Clerk within 30 days of the date of hearing. The County Clerk will notify the applicant/licensee within a reasonable time thereafter of his/her final determination with respect to the disposition of his license/application for license.
(2)
Any further appeal shall be to the court of this state with appropriate
jurisdiction.
No license under the provisions of this chapter shall be transferred
or assigned to any person or used by any person other than the licensee
to whom it was issued, his agents, employees or duly authorized representatives,
said agents, employees or duly authorized representatives having been
approved by the County Clerk.
A.
It shall be unlawful for any dealer of secondhand precious metals
or gems to engage in buying activities in any place within Sullivan
County other than the place of business designated in such license,
except to meet with a customer at his home, bank or suitable place
of business. A dealer in secondhand precious metals or gems may, upon
application to the County Clerk and receiving approval of the County
Clerk, temporarily extend his license to cover other locations, such
as flea markets, fairs, bazaars or religious or charitable organization
functions.
B.
It shall be unlawful for any dealer of secondhand precious metals
or gems to purchase any secondhand precious metals or gems from any
person whom he knows to be, or has reason to believe to be, under
the age of 18 years.
C.
It shall be unlawful for a secondhand precious metal or gem dealer
to purchase secondhand precious metals or gems from any person between
the hours of 10:00 p.m. and 6:00 a.m.
D.
It shall be unlawful for any dealer in secondhand precious metals
or gems to sell or dispose of any secondhand precious metals or gems
until the expiration of 15 days after the acquisition by such dealer
of said precious metals or gems.
E.
It shall be unlawful for a secondhand precious metal or gem dealer
to continue to carry on business after his license is suspended, revoked
or has expired and has not been renewed.
F.
It shall be unlawful to cause, allow or approve of the blockage,
obstruction or concealment from the view of the consumer any scale,
machine, weighing device or part thereof used to weigh or calculate
the value of precious metals or gems.
G.
It shall be unlawful for any dealer of secondhand precious metals
or gems to damage, destroy, alter or in any way change or direct or
request anyone else to alter or change the structure or makeup of
a precious metal or gem so as to make it unidentifiable within 15
days after the acquisition by said dealers of such precious metal
or gem.
The price upon which the dealer bases his quotation for gold
and silver shall be clearly and conspicuously displayed in Arabic
numbers in such a manner that the public will be informed.
If any articles composed wholly or in part of precious metals
or gems shall be advertised in any newspaper printed in the County
of Sullivan or reported by any law enforcement agency as having been
lost or stolen, and if any articles answering such description or
any part thereof shall be or come into the possession of any licensed
dealer, such dealer, upon receiving actual written or oral notice
of the similarity of description of such articles, shall immediately
give information relating thereto to the appropriate law enforcement
agency. No disposition of such articles shall be effected until authorization
to do so shall be given to such dealer by said law enforcement agency.
The failure of the law enforcement agency within 30 days to give the
dealer further written notice that the articles are actually lost
or are believed to be stolen and are needed in connection with a pending
investigation or prosecution shall constitute authorization to dispose
of said articles.
A.
Every dealer in secondhand precious metals or gems by the close of
the business day shall keep a record on a form prescribed by the Sullivan
County District Attorney of consecutively numbered transactions, legibly
written in English, which shall contain a complete, thorough description
of every secondhand precious metal or gem article so purchased, utilizing
accepted trade words and phrases such as, but not limited to, serpentine,
herringbone, braided herringbone, rope, crosscut, woven link, cobra,
basket weave, tricolor, Florentine, twist, beveled, gem names as listed,[1] quantities of gems, number or numbers of said articles. The record shall also include the name, residence address and description of the person from whom such purchase was made, including the day and hour of the purchase and a copy of the form of identification provided and required to be obtained from the seller as set forth in § 167-13, below. The record shall also include a digital picture of the every secondhand precious metal or gem article so purchased, along with a description of any identifying marks or engravings. The dealer shall be required to inquire into the seller of how the seller obtained the item(s) sold and record that information. Within 48 hours of the close of business on the day of the purchase, the dealer in precious metals or gems shall forward by e-mail to the Sullivan County District Attorney's office and municipal police department within whose jurisdiction the dealer's business is located a copy of the record of purchase, as provided above, of each transaction that took place on that day. The Sullivan County District Attorney's Office shall act as the central repository for such records.
B.
Such record shall be kept on the business premises of the secondhand
precious metal or gem dealership or at the place designated on the
fully approved license, at all times during normal business hours.
Such record shall be open to the inspection of any police officer
or the Sullivan County District Attorney or any person duly authorized
for such purposes by the County Clerk.
C.
The dealer is mandated to use the forms prescribed by the County
Clerk and shall reimburse the County Clerk for the cost of said forms.
A.
It shall be the duty of every secondhand precious metal or gem dealer
to verify the identify of every person from whom he makes a purchase
and to make and keep a written record of the nature of the evidence
submitted by such person to prove his identity and attach a copy of
the identification taken to the reporting form.
B.
Only the following shall be deemed acceptable evidence of identity:
(1)
Any official document, except a Social Security Account number card,
issued by the United States Government, any state, County, municipality
or subdivision thereof, any public agency or department thereof or
any public or private employer, which requires and bears a photograph
and signature of the person to whom issued.
C.
It shall be the duty of every dealer in secondhand precious metal
or gem articles to require that every person from whom an article
is purchased sign his or her name in the presence of the secondhand
precious metal or gem dealer and to compare the signature on the identifying
document, if any, and retain on said premises the person's signature,
together with the number and description of the identifying document,
if any.
Every secondhand precious metal or gem dealer shall furnish
to the County Clerk or his agent or the appropriate law enforcement
agency all information requested relative to all records required
to be kept under this chapter.
It shall be the duty of the Sullivan County District Attorney
or any police officer having jurisdiction at the site where a person
is seen dealing in secondhand precious metals or gems to require such
person seen so dealing and who is not known to the Sullivan County
District Attorney or such police officer to be duly licensed to produce
or display his secondhand precious metal dealer's license and
to enforce the provisions of this chapter against any person found
to be in violation of the same. It shall be the duty of the Sullivan
County District Attorney or any police officer as described herein
to require the immediate closure of any business dealing in the purchase
of secondhand metals or gems as defined herein who is operating said
business without a license as required by this chapter.
This chapter shall not create any liability on the part of the
County of Sullivan, its officers, agents or employees or any police
officer for any act or damage caused as a result of reliance on this
chapter or any administrative decision lawfully made thereunder.
A.
Failure to comply with any provision of this chapter shall constitute
a Class A misdemeanor and exclusively prosecuted by the Sullivan County
District Attorney's office and shall be subject to any sentence
permitted for a Class A misdemeanor under the Penal Law, including
up to one year in the Sullivan County Jail as provided in §§ 60.01
and 70.15 and Article 65 of the Penal Law of the State of New York.
B.
In addition to the penalties provided in Subsection A above, any such offense against the provisions of this chapter shall subject the person or business entity committing the offense to civil penalties, not to exceed $500 for each offense and each day that the offense shall continue. Any such penalty shall be collectible by and in the name of the County of Sullivan.
